InvestorQ : What is the view on the listing of Prince Pipes IPO, which is expected to be listed in the exchanges on 30 December?
Lavanya Subramanian made post

What is the view on the listing of Prince Pipes IPO, which is expected to be listed in the exchanges on 30 December?

Answer
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ishika Banerjee answered.
8 months ago


The IPO of Prince Pipes and Fittings which closed on December 21 will get listed on the stock exchanges on December 30, 2019. It may be recollected that the IPO was sold in the price band of Rs.177-178 and the issue was subscribed 2.22 times (combined across all categories) during the book-building process. As against the total issue size of Rs.350 crore (non-anchor), the IPO witnessed demand for shares worth Rs.778 crore.

The IPO is a mix of fresh issue and offer for sale. Chunk of the new issue proceeds will be go towards setting up a manufacturing facility and repayment of loans. The company has already raised over Rs.106 crore in a pre-IPO placement.

The only worry is that the company is already richly priced and upsides maybe limited from current levels. One must enter this stock only with a degree of caution.


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Roshni Hegde answered.
8 months ago


Prince Pipes and Fittings, the polymer pipes and fittings manufacturer, made its debut in trade today, on 30th December 2019 with a 10% discount to issue price. The stock traded at Rs. 160 on NSE and BSE against the final issue price of Rs 178 per share. The listing disappointed investors as it was expected to raise Rs. 500 crore through strong subscription. Market experts see the company with low market share in a competitive industry.

During the subscription period December 18 to December 20 was subscribed at 2.21 times, that itself was a low record compared to th percent IPOs like Ujjivan Small Finance Bank, CSB Bank etc. The fund raised will be issued towards repayment of certain setting up a manufacturing facility and repayment of loans. If you are looking to invest in this stock I think it would be good for long term investment. Profit in a shorter period is least expected.